The rally continued after the Labor Department reported that U.S. employers added 236,000 jobs in February and the jobless rate fell to 7.7 percent from 7.9 percent in January.

The strong job growth signals that employers are confident about the economy despite higher taxes and government spending cuts.

Optimism that hiring is picking up has been one of the factors bolstering the stock market this year. Stocks have also gained on evidence the housing market is recovering and company earnings are growing.

Stocks have also been boosted by continuing economic stimulus from the Federal Reserve.